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The third price rise of iron oxide this year

May 13, 2021

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On May 10, the reporter learned from the Iron Oxide industry branch of China Coating Industry Association that iron oxide ushered in the third price increase this year, mainly due to the rising price of the cost end iron sheet. The rapid increase in price has exceeded 3000 yuan / T and the awkward situation that the goods can not be purchased, which has an impact on the production and is difficult to return to the full load state.

According to the introduction, in May, there were many iron sheet supply and production reduction, so the enterprises were difficult to reach the maximum supply and the export maintained heat. The price rise of iron sheet is not available. The increase of demand side makes the inventory situation of enterprises nervous. Recently, the iron oxide market has been up 500 yuan / ton and export products of $100 / T. in the early stage, if some enterprises can store more orders, they will reduce the loss. The leading enterprises in the industry have booked orders in the second quarter, and the trend of "tight price increase" will help to push the iron oxide price up.

For phthalocyanine blue and phthalocyanine green series pigments, the price has risen nearly 3000-5000 yuan / ton since the beginning of the year, and the goods are intermittently out of stock, and orders have been booked out in the first half of the year.

The iron oxide branch of China Coatings Industry Association once again reminds all member units of iron oxide industry to strengthen information communication with customers in combination with their own operation conditions, and truthfully inform customers of the fluctuation of market price of chemical raw materials, metal iron sheet, auxiliary materials and freight, and negotiate on their own according to market demand and adjust price negotiation, In order to jointly resolve the operational risks, the market environment of iron oxide should be constructed in a standardized and orderly way.

The iron oxide branch requests all member units to strictly implement the relevant national and industrial standards and regulations, maintain the market and basic profits of the industry, and provide high-quality services to customers, and ensure the healthy and orderly development of the iron oxide industry.

Lin Zhihua, Secretary General of iron oxide branch, pointed out that the branch will pay close attention to the price trend of market raw materials and send market price change information to all enterprises in time according to the actual situation. All enterprises can adjust their business strategies according to the market conditions, and negotiate with the cooperative units in a friendly manner in accordance with the principle of legality, rationality and truth, and improve the price adjustment mechanism as far as possible, In order to avoid a new round of market turmoil.

Lin said the iron oxide industry continued to deepen reform and create new impetus for development; We should strengthen the opening up and expand the circle of friends of the Association; Encourage the responsible role to gather the positive energy for development, and promote the iron oxide industry to achieve higher quality, more efficiency and sustainable development.

Lin Zhihua said that since 2021, the price of chemical raw materials has risen like a rainbow. We have guessed that so many kinds of chemical products have risen in the first quarter, and downstream customers are very "buying accounts" of rush purchase and queuing. So in the past quarter, is the chemical raw material enterprise making a full pot of money and can not close its mouth?

Pigment coating companies say that the current price surge in addition to the downstream flame rise, a large part of the reason is the upstream raw materials industry "tight price" trend.

With the increasing epidemic abroad, manufacturing industry in many countries and regions has been affected. Factories cannot operate at full load, and the export industry chain has also stagnated. Whether it is medicine, pesticide, API, chemical industry, textile industry, printing and dyeing industry, it is a sustainable development industry in all countries around the world, especially in chemical industry, and will not stop production, transportation and sales due to the invasion of the epidemic.

The national market price of means of production rose 1.2 per cent from April 26 to May 2, compared with the previous week. The price of steel rose slightly, including the price of screw steel, high-speed wire rod and ordinary medium plate increased by 1.3%, 1.2% and 1%. The price of coal has increased, among which the price of power coal, coking coal and No.2 anthracite lump coal has risen by 1%, 0.5% and 0.2% respectively. The price of non-ferrous metals increased, including 4.3%, 2.5% and 1.7% respectively. The supply of raw titanium ore is tight, and the price will continue to maintain high, and the full inflation will come! Steel mills soared 370 yuan / ton! There is a panic downstream! Now most people are gradually aware that not only textile, chemical, industrial products, daily use, food and beverage, and clothing, food and housing related to people's lives have shown signs of rising prices. The rapid price rise is mainly due to two reasons: one is "big water release" in the world, the other is that the global economy begins to recover, and the demand for products has risen sharply, which has resulted in a tense situation of supply and demand.

Lin Zhihua pointed out that the main reason for the soaring steel price after May 1 is that "carbon reaches peak and carbon neutralization" is a solemn commitment made by our government to the world. Projects with high energy consumption and high emission that do not meet the requirements will be firmly taken down, which is a broad and profound economic and social reform. For our steel industry, it is no less than the reform of "blue sky and white cloud defense war" in previous years, so steel prices rise and rise rapidly. Two, COVID-19 has stride forward singing militant songs since the beginning of the world's central banks. The global market has been rising by 5 yuan, and the US has printed more than 5 billion dollars last year. This year, it printed 1 trillion and 900 billion dollars. In the past 14 months, the US banknote printing increased by 82%, the UK nearly 60%, and the euro area's super growth increased 53%. The currency that is constantly over issued causes devaluation. In this context, the price of 30 commodities in 57 major commodities in the world has increased by more than 10% year on year, 11 commodities, such as copper, rubber, aluminum and coke, increased by more than 30% year on year, and crude oil increased by 200%. Third, the global economy began to recover, the demand for production and investment increased, and the demand for raw materials and other products increased significantly, which resulted in a tight supply and demand situation.

Lin believes that price hikes have become a general trend. The most important thing is that many countries will be more and more serious in water release, and that countries will seriously exceed the world level, so it is only strange that the prices of various products will not rise. At present, the inflation of global commodities, the hot roll price in the United States has exceeded RMB 10000, with more than 9000 threads. Now the price of iron ore will soon exceed 200 dollars. Copper price doubled, the price of power coal reached a record high, and the prices of steel and nonferrous metals have been rising. Under the global inflation pattern, steel price is not easy to fall, but also to rise.

Lin pointed out that the current demand of the downstream is poor and the acceptance is not high, which is simply worthless in front of the above two reasons, and can not stop the trend of steel price rising. Considering the continuous increase of raw material price in recent years, the cost center is moving up continuously, and the expectation of supply contraction in the later period is superimposed, so that the willingness to settle the price of steel plant is very high, and the short-term market will still maintain strong operation. The rapid rise in steel price has directly affected the production of iron oxide and the shortage of market supply.

Upstream raw materials have been rising continuously since the beginning of the year, and the high volatility of oil prices has constantly refreshed high values, which has promoted the continuous rise of raw materials. Queuing and no goods make chemical enterprises more anxious. Since the second quarter, the downstream industry of iron oxide has entered the peak season, and the pull of these industries has brought good benefits to the pigment and coating industry. In addition, people have a deeper and more advanced understanding of environmental protection, many industries are automatically purchasing environmental protection paint. In the future, in the situation of short supply, the pigment and coating industry is expected to subvert the history, while the price rises, there is also a greater "bargaining power" and "bottom gas" in front of downstream industries.

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